Page 1 of 8 KENYA INDUSTRY AND ENTREPRENEURSHIP PROJECT (KIEP) Terms of Reference for the position of Small and Medium Enterprise (SME) Development Manager Ministry of Industry Trade and Co-operatives (MoITC) - State Department for Industrialization (SDI) Project: KENYA INDUSTRY AND ENTREPRENEURSHIP PROJECT (KIEP) Project Location: Ministry of Industry Trade and Co-operatives (MoITC) – [State Department for Industrialization (SDI) - Project Implementation Unit (PIU)] Contract type: Individual Consultancy Start date: October, 2019 Duration: 2 years contract renewable based on performance (Project period – 5 years) Location: Nairobi, Kenya A. PURPOSE OF ASSIGNMENT The Ministry of Industry, Trade and Cooperatives, Government of Kenya is leveraging financing from the World Bank to spearhead and manage the Kenya Industry and Entrepreneurship Project (KIEP). The KIEP endeavors to increase innovation and productivity in select private sector firms in Kenya and will be implemented over five (5) years beginning in 2019. The State Department for Industrialization is hiring an individual consultant as a Small and Medium Enterprise (SME) Development Manager who will also act as a Team Lead for Component Two on SME Linkages and Upgrading. This individual will manage the activities for Component 2, including oversight as well as designing, running, and monitoring the Component’s technical and administrative work.
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KENYA INDUSTRY AND ENTREPRENEURSHIP PROJECT (KIEP)
Terms of Reference for the position of Small and Medium Enterprise
(SME) Development Manager
Ministry of Industry Trade and Co-operatives (MoITC) - State Department for Industrialization (SDI)
Project: KENYA INDUSTRY AND ENTREPRENEURSHIP PROJECT (KIEP)
Project Location: Ministry of Industry Trade and Co-operatives (MoITC) – [State Department for Industrialization (SDI) - Project Implementation Unit (PIU)]
Contract type: Individual Consultancy
Start date: October, 2019
Duration: 2 years contract renewable based on performance (Project period – 5 years)
Location: Nairobi, Kenya
A. PURPOSE OF ASSIGNMENT The Ministry of Industry, Trade and Cooperatives, Government of Kenya is leveraging financing
from the World Bank to spearhead and manage the Kenya Industry and Entrepreneurship Project (KIEP). The KIEP endeavors to increase innovation and productivity in select private sector firms in Kenya and will be implemented over five (5) years beginning in 2019.
The State Department for Industrialization is hiring an individual consultant as a Small and
Medium Enterprise (SME) Development Manager who will also act as a Team Lead for Component Two on SME Linkages and Upgrading. This individual will manage the activities for Component 2, including oversight as well as designing, running, and monitoring the Component’s technical and administrative work.
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B. PROJECT BACKGROUND
Project Description
The Project Development Objective is to increase productivity and innovation in select private sector firms. The higher-level objectives of the project are to accelerate the growth and competitiveness of Kenya’s private sector by improving productivity and innovation. Key instruments include firm-level support, strengthening the innovation and entrepreneurship ecosystem, increasing their managerial and technical skills, building linkages between traditional industries and startups, and upgrading their equipment and technology.
The Project has three components that focus on the following areas: Component 1: Ecosystem Support a. Under Component 1A, Administration of Incubator/Accelerator Performance
Contracts The objective is to strengthen the intermediaries that underpin and support early-stage
companies and the broader innovation and entrepreneurship ecosystem. The approach includes the use of performance contracts to build capacity of ecosystem intermediaries including incubators, accelerators, and technology boot camp providers. This would allow them to offer better quality services and more soundly pursue their own individual business plans and operational objectives.
b. Under Component 1B1, International Acceleration Process The objective is to connect the Kenyan ecosystem to international networks of talent and
support infrastructure (for example, mentors and early-stage investors) by conducting active outreach, attracting international and regional talent to establish their startups in Kenya, and pairing established firms with technology-enabled startups.
c. Under Component 1B2, Industry-Startup Linkage Program The objective is to develop a productive connection of startups and ecosystems stakeholders
with traditional industries. The platform aims to bridge medium to large companies from key priority industries with technology-enabled startups and create new startup products and services. It would provide practical capacity building on innovation and technology adoption to staff of participating large companies, facilitate and manage relationships between startups and select corporates, and provide support to startups for product and service creation.
d. Under Component 1B3, Industry-Academia Platform
The objective would be to create a Kenya-wide industry–academia platform to support open innovation between Kenyan firms and academia, through collaboration, while also generating new opportunities for students. The IAP would boost the entrepreneurial talent supply for Kenyan firms and support innovation and growth in startups and existing firm.
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Component 2: Firm-level Support e. Under Component 2, SME Linkages and Upgrading The objective is to help strengthen the productivity and internal capabilities for innovation of
select SMEs, by improving their managerial and technical skills and their use and access to technology, in order to significantly increase their competitiveness, as well as to strengthen local supply chains and sales by Kenyan SMEs to large companies.
This component will work with SMEs across various sectors, and SMEs who already supply (or
wish to supply) large firms in Kenya. Eligible SMEs accepted into the program will receive an integrated package of diagnostic and advisory services, and financial support for the implementation of changes necessary to increase their innovation, productivity and competitiveness. SMEs are defined as Kenyan firms whose annual turnover fall between KSH 50m-1b (USD $0.5mm and USD $10mm). This turnover may be from the previous financial year, or an average annual turnover from the previous three years, and those that have been in existence since the last two years and are not insolvent.
To facilitate the effective implementation for this Component, the Ministry is recruiting a
Management Consultancy Service that will be responsible for all aspects of component delivery and administration including: (i) outreach and engagement of target beneficiaries and key stakeholders (selecting both SMEs, and lead firms, investment funds, business associations etc. for the program); (ii) sourcing and managing the Business Advisors to be used in the program; (iii) providing diagnostic services to SMEs; (iv) supporting selected SMEs to draft performance improvement plans, in line with the recommendations of the diagnostic; (v) managing the process of selection for SMEs to enter the program, including negotiating performance contracts with SMEs, including milestones and amounts to be disbursed against each; (vi) providing coaching to assist SMEs to reach those milestones; (vii) reviewing deliverables and achievement of milestones, and conducting due diligence of beneficiary SMEs; (viii) disbursing funding to SMEs for the completion of milestones; (ix) establishing a database of SME advisory firms; and (x) collecting data and reporting progress to the Government of Kenya.
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More details on the scope of services of the Management Consultancy are provided in the Annex.
Component 3: Communication, M&E f. Under Component 3, Communication, Monitoring and Evaluation The objective is to coordinate the project’s communications strategy, covering all components
and stakeholders. Develop M&E strategy and analysis to ensure implementation and sustainability of the project’s activities.
(Details of the Project Components is available in the KIEP Project Appraisal Document
available in the Project’s website: www.kiep.go.ke)
C. SCOPE OF WORK The SME Development Manager and Team Lead for Component Two – SME Linkages and
Upgrading will be required to: - Develop inputs for Component Two to be included in the Annual Work Plan and Budget
and monitor its implementation - Supervise the Management Consultancy firm recruited for the Management of Support
to SMEs through Capacity Building assessment and Performance based funding. - Act as liaison between SDI-PIU and other Strategic Partners for component two i.e. World
Bank, procured Management Consultant and the private sector to realize the KIEP objectives
- Liaise with the Project Manager for smooth implementation of Component Two - Oversee the activities of the consultants managing the recruitment of eligible SMEs based
on the recommendations of lead firms, investment funds, business and industry associations and banks including monitoring the respective performance contracts
- Oversee implementation and completion of initiatives undertaken under Component Two, reviewing outputs and reporting from the Management Consultancies in the PIU, and briefing the Coordinator, Deputy Coordinator of the PIU
- Advice on the SMEs development and linkages program including monitoring the
preparation and implementation of outreach events and workshops
- Advice on the recruitment, training and managing of the Business Advisors to deliver the
Business Diagnostic Service, and the Implementation Support coaching;
- Conduct periodic spot checks to assess implementation of Component Two’s Performance Contracts with beneficiaries
- Review lessons learnt reports by the Management Consultancy firm and propose recommendations on design changes.
- Convene and attend all project meetings related to Component Two - Prepare and submit technical monthly reports for Component Two to guide project
implementation - Brief the Project Coordinator and Project Manager on project implementation hiccups
and progress of Component Two - Carry out research on relevant areas of concern under Component Two and share the
findings with stakeholders - Update the operations manual in the area of Component Two
D. FINAL OUTPUTS AND SCHEDULE OF COMPLETION OF TASKS
The consultant, will in consultation with the PIU, be required to complete the following
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deliverables relating to the Component Two among others: - Prepare the annual work plans and budget for component Two - Prepare regular monthly progress reports including
o Main outputs produced during the previous month, update on budget and workplan
o Summary of contracts and outputs by Management Consultancy firms procured under Component Two (incl. Main progress, key deadlines, challenges, main issues and mitigation actions)
o Progress briefs on monitoring implementation and flagging issue. o Analysis on key topics and memos for senior level counterparts
- Other deliverables as agreed with Project Coordinator and Project Management over
the course of the consulting engagement.
The Monthly Progress Reports would be submitted every month by the 5th day of the subsequent month. For any other deliverables, the timelines would be decided by the PIU Project Coordinator or Project Manager.
E. PROCEDURES FOR REVIEW OF PROGRESS REPORTS, QUARTERLY REPORTS AND
FINAL REPORTS All reports should be submitted to the Project Implementation Unit (PIU) at the Ministry of
Industry, Trade and Co-operatives within an agreed timeframe.
F. DATA, SERVICES AND FACILITIES TO BE PROVIDED BY THE MOITC The Ministry will be involved in all stages of implementation, including vetting the selection of
the participating stakeholders for the different stages of the program. The Ministry will also provide a full list of contacts for stakeholders (including potential industry players, lead firms, investment funds, business and industry associations, banks and other relevant entities) consulted and the high-level design recommendations developed during the project preparation.
Specific services to be made available to the Consultant by the Ministry are as follows:
- Confirm selection of beneficiaries for upgrading, linkages, partnerships, recruitment from corporates and associations;
- Provide No Objection to the final disbursement conditions - Provide No Objection to the Business Development Service Providers for capacity
building the beneficiaries. - Review reports and data provided by the Consultant.
G. REQUIRED EXPERIENCE & SKILLS
- Economics, Business or comparable degree. (a Masters degree in a related field would be an added advantage).
- Strong operational management, analytical, technical writing and public presentation skills
- Proven track record of managing at least two projects of similar nature (i.e. organizational capacity assessment, SME strategy, performance-based contracting, or grant management for SMEs) during the last three years
- Experience working with SMEs in the region in an advisory capacity over the last seven years
- Strong understanding of the shortcomings and opportunities within the operating and
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business environment of the SME ecosystem in Kenya - Proven ability to operate effectively with different stakeholders including government
and private sector - Previous experience supervising consultancies
H. PAYMENT SCHEDULE
The total contract will be for 5 years on a two-year renewable contract based on the satisfactory
performance of the consultant during the first two-years of the assignment.
DELIVERABLE TIMEFRAME % OF PAYMENT
Monthly Progress
(60) Reports
Within 5 days of the
subsequent month
Monthly Payments (Total Contract sum
divided by 60 months) based on
the submission of an acceptable
monthly report
I. REPORTING
The position reports to the Project Coordinator - KIEP and the Project Manager at the State
Department for Industrialization.
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ANNEX: Select information on ‘Scope of work’ from Terms of reference of the Management Consultancy contract in Component Two
The objective of the Consultant Company assignment under this Component is to
increase productivity and innovation within established Kenyan SMEs by
supporting select firms to improve their managerial and technical skills and
their access to and use of technology.
The scope of work for the Management Consultancy for this Component will include: - Recruiting and involving the lead firms, investment funds, business/industry
associations throughout the life of the program
- Gathering information on the supply chain needs of lead firms
- Developing a database of eligible SMEs based on the recommendations of lead
firms, investment funds, business and industry associations and banks
- Recruiting SMEs into the program, including through outreach events and
workshops
- Recruiting, training and managing diagnostic analysts to deliver the Business
Diagnostic Service, and the Implementation Support, Conducting the Business
Diagnostic Service, including the assessment of the productivity and growth
potential of each participating SME, as well as generating a Performance
Improvement Plan for each SME with agreed upon milestones
- After drawing the Performance Improvement Plan, the consultancy will
negotiate a Performance Contract by setting out milestones and disbursement
timelines with individual SMEs
- Assisting beneficiary SMEs to access business development services and
equipment providers in order to implement their upgrading plans
- Collecting firm-level productivity improvement data every six months for SMEs
still in the program, SMEs who dropped out, and for graduates of the program
for up to two years after engagement
- Managing the financial disbursements to SMEs
- Verifying the pieces of evidence presented by SMEs to show the achievement of
milestones, documenting this evidence and sharing the same with the PIU
- Creating and managing a database of business development service providers
and periodically conducting customer satisfaction surveys with SMEs on these
providers
- Repeating and rolling out the program to new cohorts of potential SMEs; the
timeline for each cohort will be flexible based on the performance contracts
drawn for participating SMEs
- Documenting the learnings from previous cohorts and implementing learnings
in new cohorts
- Periodically revisiting proposed financial disbursement and upgrading
arrangements after gaining some operational experiences
- Compiling information and images/videos on participating firms, their
performance improvement plans, and implementation progress for
dissemination on a project website and publishing it externally, i.e., through SME
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Linkages and Upgrading website, Facebook page, or database. Coordinate with
the overall communications firm for the project
- Collecting baseline performance data on participating SMEs as part of the
Business Diagnostic Service, and tracking changes by Business Advisors over the
life of the engagement to measure progress or changes against the baseline, as
well as conducting surveys after the end of the engagement
- Coordinate with the PIU on M&E for the project
Specific target for the participation of women-led or women-owned SMEs is at a
minimum of 20% of the total beneficiaries in the program. The Consultancy
company should gather key lessons on outreach and retention of women-owned
SMEs during the first round of applications and propose modifications on the
program design to the Project Implementation Unit as needed, to increase the
number of participating women-led or women-owned SMEs.
The assignment will be conducted over a period of five years, targeting approximately
250 SMEs over a period of five years. For the purpose of project implementation,
the assignment has been split into two phases, with Phase 1 and Phase 2
